GMA Network expects to be debt-free by ’05

Banking on its sustained profitability, GMA Network Inc. expects to settle all its debts by end-2005, company officials said.

GMA vice-president for finance Ronaldo Mastrilis said the company will be debt-free by the end of next year with the expected settlement of the remaining portion of a P1.9-billion loan secured in 2000.

Mastrilis said the network will pay P500- million worth of principal loans this year, with financing coming from internally-generated funds.

Profits of GMA, the country’s second largest broadcast network, are seen to increase by more than 50 percent this year, with advertising revenues and local programming driving the growth.

GMA posted a net income of over P1 billion last year or more than double the company’s net income in 2002 of P406 million. Revenues likewise jumped 29 percent to P6.2 billion from only P4.8 billion.

The network exceeded its 2003 income and revenue targets as a result of the cost-efficiency of many of its programs.

To further strengthen its foothold in the industry, GMA is allotting P350 million for its capital expenditures this year, anchored on the launch of its international operations in North America, the revival of its ultra-high frequency (UHF) TV station, and the production of two or three movies.

The company plans to offer its locally-produced programs abroad starting this year with North America as its first expansion site.

Officials expect international operations to account for 25 percent of the company’s bottomline by the fourth or fifth year of operations.

The network is also gearing up for the relaunch of its UHF TV station – Channel 27, which ceased operations in 2001 due to huge losses.